Group insurance sales ended 2024 on a strong note, according to LIMRA's Canadian Group Life and Health Survey, covering the fourth quarter of 2024.
According to LIMRA's survey, $1.0 billion in group insurance was sold in the fourth quarter of 2024, in terms of annualized premiums. This represents 34% growth over sales of $768 million in the fourth quarter of 2023.
However, sales were down year-on-year. Total annualized premiums of $4 billion earned in 2024 represent a 14% decline on 2023 results, according to LIMRA. The year 2023 was marked by an exceptional third quarter, at the end of which sales reached $2.4 billion, LIMRA's survey reveals.
In 2024, 74% of group insurance sales in terms of annualized premiums came from new business. Sales resulting from changes to existing plans accounted for 26% of total sales in 2024.
Group insurance sales of drug and other health benefits declined by 20% in 2024, compared with 2023. They totaled $3.2 billion in 2024.
In contrast, sales of group life insurance increased by 24% in 2024, compared with 2023. They totaled $243 million in 2024.
Sales of long-term disability benefits also grew strongly in 2024, up 18% over 2023. Sales of this benefit totaled $565 million in 2024.
Concentrated market
The Canadian group insurance market is concentrated in the hands of five players, according to LIMRA's survey. They accounted for 78%, in terms of total annualized premiums sold in 2024. LIMRA ranks them in alphabetical order: Canada Life, Desjardins Financial Security, iA Financial Group, Manulife and Sun Life. The other insurers share the remaining 22%.
Seventeen insurers participated in LIMRA's 2024 Canadian Life and Health survey: Alberta Blue Cross, Assumption Life, Beneva, Canada Life, Co-operators Life, Desjardins Financial Security, Empire Life, Equitable Life, GreenShield Canada, iA Financial Group, Manitoba Blue Cross, Manulife, Medavie Blue Cross, Pacific Blue Cross, RBC Insurance, Saskatchewan Blue Cross and Sun Life.
